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U.K.’s expertise, India’s skills will help to meet energy needs: envoy
Several British firms seeking to invest in India’s renewable energy sector
Private sector has a role in solving growing energy problem Many British companies have already set up operations in this sectorCHENNAI: Bringing together the United Kingdom’s scientific expertise and capital and India’s skills and entrepreneurship will be vital to enable both countries to meet their energy requirements, Richard Stagg, British High Commissioner to India, said here on Tuesday.
Addressing a seminar on sustainable energy, organised by the Centre for Security Analysis, he stressed the role of the market and the private sector in both countries in solving the growing energy problem.
“Governments can set targets and frameworks, but cannot always deliver in practical terms. Markets and the private sector have a critical role to play in not just financing renewable energy sources but also developing strong global markets for carbon trade.”
Mr. Stagg said there was significant capital in the U.K. and a number of firms were seeking to invest in the renewable energy sector in India. Several U.K. companies such as British Petroleum, IT Power and Moser Baer had set up operations in this sector in India, and HSBC had established a climate change centre of excellence in Bangalore. Moser Baer had announced an investment of $487 million in a solar photo-voltaic cell facility and planned a total investment of $800 million over the next five years. “We believe the renewable energy sector will become a real and serious business, and not just some small corner shop enterprise,” he said. “By 2050, the renewable energy sector will be worth $3,000 billion and employ more than 25 million people.”
Energy demands
India’s energy demand was expected to double in the next 25 years. The Government’s Integrated Energy Policy envisaged a 40-fold increase in renewable energy, accounting for six per cent of the country’s total energy requirements by 2030. Mr. Stagg said the U.K. would work to help India achieve that “ambitious” target by sharing expertise in renewable energy and developing technologies to suit local needs. The UK-India Education and Research Initiative (UKERI) was sponsoring a number of projects related to renewable energy and climate change. The U.K. could also work with India on civil nuclear energy production.
Terence John Hart, CEO, IT Power India, a renewable energy consultant, said more Indian private sector enterprises were coming into the renewable energy market, especially in wind and hydro electricity. India’s wind energy potential was estimated to be 45,000 MW, of which less than 15 per cent was being tapped now.
“There is tremendous indigenous demand and potential, but no policy in place,” Mr. Hart said. “For instance, around 80 per cent of the solar panels produced in India are being exported. Captive power generation in the private sector needs to be encouraged and performance-based incentives need to be introduced.”
The Hindu, 28 November 2007